U.S. TAX GUIDE IN FRANCE
What is the IRS Streamlined Offshore Filing Procedure?
The IRS Streamlined Offshore Filing Procedure helps Americans abroad who unknowingly failed to file US tax returns. This includes people born in the US or those who acquired citizenship through American parents and have rarely lived in the US.
How does the Streamlined Procedure work?
The procedure involves filing the last three years of federal tax returns and the last six years of FBARs. It also requires an offshore certification statement explaining the previous non-compliance and affirming future compliance. This program can waive penalties on unpaid taxes and FBAR violations, although interest on owed taxes may still apply.
Who can benefit from the Streamlined Procedure?
This program is particularly beneficial for “accidental Americans,” like those born to American parents abroad or those who left the US at a young age.
What happens if taxes are owed under the Streamlined Procedure?
If taxes are owed, individuals will pay a small interest amount on the unpaid taxes. However, penalties are waived. Many individuals may owe no taxes due to foreign tax credits, which offset US tax liabilities with taxes paid in their resident country.
